Algeria Set to Record Africa’s Fastest Renewable Energy Growth at 42.5% CAGR

Algeria is on track to record the fastest growth in installed renewable energy capacity in Africa between 2026 and 2031, with a compound annual growth rate (CAGR) of 42.51%, driven by the expansion of solar power projects and plans to develop green hydrogen linked to the export network, according to Attaqa,net website, citing a recent report by research firm Mordor Intelligence.

The report said Algeria is moving toward this growth following the launch of a tender for 1 gigawatt (GW) of solar power, alongside efforts to align its green hydrogen plans with the export network operated by Sonatrach.
In the same context, Algeria has opened two solar power plants this year with a combined capacity of 400 megawatts (MW), as part of the first phase of a national program aimed at increasing solar capacity to 3,200 MW, compared with around 600 MW currently.

Algeria’s projections come as Africa’s renewable energy sector undergoes rapid expansion. Total installed capacity is expected to rise from 86.95 GW in 2026 to 179.66 GW by 2031, representing a CAGR of 15.62% and more than doubling capacity over the forecast period.

Solar power is expected to be the fastest-growing renewable energy technology on the continent, with a projected CAGR of 27.84% through 2031. Meanwhile, combined solar and wind capacity is expected to surpass hydropower capacity by 2029.

Algeria is benefiting from abundant solar resources and declining solar technology costs, alongside plans to develop green hydrogen, supporting the country’s expansion in the clean energy sector.